Motorists who take out a fully comprehensive insurance policy in December are paying a lot more than those who insure their vehicle two months later.
That’s according to new research, which shows that drivers could save an average of 18 per cent on their insurance simply by waiting two months.
Comparison site Moneysupermarket’s analysis of more than six million quotes between January 2013 and October 2018 showed that the average fully comprehensive policy taken out in February cost £475.60. However, people who insured their car in December paid an average of £560.80 – 18 per cent more.
Tom Flack, editor-in-chief, said: “People buying a car often wait until December to secure a bargain as dealers look to shift stock before the end of the year, but it comes with the downside that it’s the most expensive time of year to buy insurance. Those insuring in December pay, on average, £85 more per year than those who take out insurance in February.
“No matter when your car insurance is up for renewal, it pays to shop around on a price comparison site. You could end up saving as much as £276 a year just by switching insurers.
“Alongside searching to ensure you’re on the best deal, it pays not to wait until the last minute: insurers give consumers a 45-day window to renew their policy and often reserve the best prices for those who are organised and don’t leave it late, as they are perceived as safer drivers.”
The insurance savings are caused by dealers trying to shift cars before the end of December – therefore pushing up the number of policies taken out. This means there are fewer people shopping around for insurance come February, which in turn means insurers try to offer more competitive premiums to entice new buyers.
People thinking of buying and insuring a new car could therefore be better off waiting until February to get a better deal.